Cook grits according to package directions. Stir in cheese and remaining ingredients. Spoon mixture into a lightly greased 13- x 9-inch baking dish.
Bake at 350° for 1 hour or until set.
For Chili-Cheese Grits Squares: Chill remaining half of grits. Cut into squares and broil 5 inches from heat 1 minute on each side or until golden. Serve with Beef and Vegetables.